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<br /> _ ` �If under parsgrapN 1 $ hereof the Yroperty is sold m• the Properb�� is citherwise acquired hy Lender, Lender
<br /> shall apply, no later tl�a�i innnediately C�rior to tlie snlc of tlie Proiier6y or its acquisition Ly I,ender, any Funds �
<br /> held by Lender at the time of api�lication as s. credit againsi tlic suins �ecurecl by i his Mortgage.
<br /> 3. Application of Payments. Unless a{�plica6lc ]a��• provides other�vise, all payinents received by Lender
<br /> � under tlie Note and paragraphs l and 2 hereof slrall }�c applied by I.encler first. in payment of arnounts payable to
<br /> � Lenciei� by Borrower under paragrapli 2 hereaf, then to interest payaUlc on the ?�'ote :�nci on P'uture Advances, if
<br /> � any, and then to the j)rincipal of the Note nnd to t}�e principal of Futu�•e �dvances , if any. , '
<br /> '�1'1 4. �harges; i.iens. Borrower stiall l�ay all tuxes, nssessments and other chsrges, fines �nd impositions attrib-
<br /> � ut,able to the ' Property ,which rnay attain a �l•iority over this 14ortgage, and �round rents, if aTiy, at Lender's
<br /> � option in the manner ��rs�vided under i�aragraiih 2 hereof or by 'Borrowerv in�king payment, when due; directly to
<br /> � the payee thereof. Bocrotiver sha11 proinptly furnisli to Lender all notices of aitioutits due under tliis paragraph ,
<br /> ^ and in :the event Borrower S1ia11 make payment directly; Borro�ver shall prmi�ptly furnish to I,ender Yeceipts evi-
<br /> denoing such paym2nts: $orrower shali j�romptly discharge any lien which has priority over this 1lortgage ; pro- '
<br /> vided, that $orrower shall not be requirecl to eiiscl�arge any such ]ien so long ss Borrower sl�all agree in cvriting ,to
<br /> the payment of the obligation secured by such lien in a inannei• accept� ble to I.ender, or sh�ll iti good faith contest
<br /> � - suchlien by, or defend enfureement of such lie�i in, legal proceedings which o��erate to prevent the en#oroement of ,
<br /> . the lien or forfeitnre of the Property or any part tl�ereof.
<br /> ' S. Hazard Iasurance. Borrower sl�ali kee�'� tl�e i�nprovements now existing or i�ereafter erected on the Prop-
<br /> erty insured against loss by fire, hazards included witliin tlie terni "extended coverage", and such other l�azards'as
<br /> ^ ' Lender may require and in such amounts and for sucli periodc us Lender ma}> requirc ; providecl, that Lender shall
<br /> , ; . not require thaG the amount of such coverage exceed that amount of coverage required to puy the sums secured'hy
<br /> this Mortgnge. '
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to ap�rovat by Lenaer ;
<br /> provided, that sueh approval shall not be um•easonably withheld. Atl premiums on insurance policies si�all be paid
<br /> at Lender'soption in the manner provided under paragrapli 2 hereof or by Borrower inaking payment, when due,
<br /> directly to the insurance cnrrier.
<br /> In the event any policy is not renewed on or before ten days of its exp5ration, the Lender, to protect
<br /> its interest, may procure insurance on the improvements, pay the premiums and such sum shall become !
<br /> immediately due and payable with interest at the rate set forth in said note until paid and shall be
<br /> secured by this Mortgage. Failure by Borrower to cornply may, at optian of Lender, constitute a default
<br /> ` under the terms of this Mortgage.
<br /> � All insurance policies and renewals thereof shall be in form acceptable to I,ender anci shal] include a standard
<br /> mortgage clause in favor of �nd in forxn acceptable to Lender. Lender sl�all have the right t.o hold the policiee �nd
<br /> renewals thereof, and Borrower shali proinptIy furnish to Lender all renewal notices and all receipts of ' paid pre-
<br /> �' miums. In the event of loss, Borrower shall give prompt notice to tLe iusurauce carrier and Lender, and Lender
<br /> may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower other�vise agree in writing, insura3�ce proceeds shnll be applied to restoration or
<br /> + ; repair of the Property damaged, provided such restoration or repair is econanically feasible and tho security of ' '
<br /> this n2ortgage is not thereby impaired. If such restoration or i•epair is not economicall}� fcasible or if the security
<br /> of this �'lortgage would Ue impaired, the insurance ��roceeds shall I�e applied to the suins secured Uy this Mortgage,
<br /> with the excess, if any; paid to Borrower. If the Yrof�crty is abandoned by Borrower or if 13orro�ver fails to respond
<br /> ; 4 to Lender within 30 days after notice by Lender to Borrower that the insurance carrier offers to settle a claim for
<br /> insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br /> , ' restoration or repair of the Property or to tl�e smns secured by tl�is \fortga�e.
<br /> t Unless Lender and Borrower otherwise agree in �vriting, any suc}i application of proceeds to principal shali
<br /> , >' no� extend or postpone the due date of the montl�ly installments referred to in paragraphs 1 and 2 hereof or change
<br /> the amount of sucl� installments. `
<br /> If under parsgraph 18 hereof the Yroperty is acquired by Lender, all right, titde and interest of Borrower in `
<br /> aud to any insurance nolicies and in and to the proceeds t}iereof tto tlie extent of the sums secured by this bSort-
<br /> gage immediately prior to such sale or ncquisition ) resulting frorn damagc t,o tiie Pi•operty prior to the sale or
<br /> acquieition shall pass to Lender.
<br /> 6. Preservation mid Mmntenance of Property; Leaseholds; Condomiaiums. Borrower shall keep the Prop-
<br /> erty in good repair and shall not permit or commit waste, impairment, or deterioration of the Property and shall
<br /> comply with the provisions of any lease, if tkis Dfortgage is on a leasel�old . If this A4ortgage is on a condominium
<br /> unit, Borrower shall perform all of Borrower 's obligations under the decl3ration of condominium or master deed,
<br /> the by-laws and regulations of the condominiu�u �>roject and constituent documents.
<br /> � 7. Pzotectioa o� Lender's Security. If Borrower fails to perform the covenants and asreement.s contained in
<br /> this Vlortgage, or if any action or proceeding is comnienced which iz�ateriaLl,y affects Lender's interest in the Prop- �
<br /> erty, including, but not liinited to, etninent domain , insol��ency, c ode enforce�nent, or arrangements or proceed-
<br /> inga involving a bankrupt or decedent, tlien I�ender at I.ender's option, upon not,ice to Borrower, may inake sueh
<br /> ; - sppearances, disburse such sums and take such action as is necessary to ��rotect Lender's interest, including, but
<br /> not limited to, disbursernent of reasonable attorney's fees and entr}* upon the Propert,y to make repairs. Any
<br /> amounts disUursed by Lender pursuant to this paragrapl� 7 , with interesG tl�ereon , shall become additional indebt-
<br /> edness of Borrower secured by this �fortgage . Unless Borrower and I.ender agree to other terms of payrpent, such
<br /> amounts shall be payable upon notice from Lender to Borrower request,ing payment thereof, and shall bear inter-
<br /> est from the date oP disbursement at the rate stated in the '�Tote unless payment of interest at such rate tivould be
<br /> ' contrary to appiicaUle law, in whicli event such amounts shall bear interest 'ut the highest rate permissible by
<br /> applicabie law. ?Vothing coot:�ined in this parAgra�li 7 sl�nll reryuire I,ender to incur any expense or do any act
<br /> hereunden
<br /> 8. Iaspection. l.ender may inake oi• c�.use to l�c �uadc i•eaFonalzlrentries upon anci inspect,ions of the Pmp-
<br /> '" erty, pro�•9ded that Lender s11all giti�e Borro��er notice ��ria• to :in}� sui•li inspection �pecif3�ing retisonable cause
<br /> cliereior reiar,�ci i,� Lender'e inieresi iu c.he Properiy .
<br /> 9. Coademnatien. The proceeds of any awArd or claim for clamuges, direct or consequential ; in connection
<br /> fi�ith any condeiunation or other taking of the Yroperty, or part thereqf, c�r for conveyance in lieu of condemna-
<br /> tion, are hereby assigned and shall be paid to I�ender. �
<br /> In the event of a total Y.aking of the I'roperty, thc proceeds shall be applied to the sums secured bp this Mort-
<br /> gage; �vith the excess, if any, }�sid to Borro�ver. In tlie event of a partial taking of the Property, unless Borrower ^^ -' ° , � KK w
<br /> xnd Lender otherwise agi•ee in wiiting, there sl�all k�e applSed to t,}ae sums secured by this M1lortgage such propor- ` -n
<br /> ' tion of the proeeeds as is eqna2 to that �roportion which tlie amount of the sums seeured by this Tfortgage imme- � � 5���
<br /> diately prior to tl�e date of taking bears<to tlie fair inarket value of tlie Propertp immediately prior to the date of ;���,�
<br /> � taking, with the balanee of the proceedspaid #o Borrower. '
<br /> If ,�the Property is abandoned by Borrower oi� if aifter notice by Lender to Borro��•er that the condemnor offers }�` �
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<br /> to make an award or settle s elaim for damsges, iiorrower faals to respond to Lender witi�in 30 dayr; oi tiie date � : .
<br /> of such notice, I.ender xs authorized to collect an3 ap}�ly iiie pi�occede Mi I.enr9er's upiiun ciilicr 6o resborn6ioxi ux� ,, .a�;;' ._„
<br /> repaxr of tha Property or to the su�ns secured l�y tliis �Iortgsge. �"
<br /> TTnless Lender and Borrower othenvise agree in zvriting, any such application of proceeds to principal shall
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